DCMS, Ofcom and Openreach issue coordinated proposals on driving UK fibre adoption as the government pushes for extensive ‘full-fibre’ availability by 2025.

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New Openreach volume-based fibre pricing to cause revenue hit, but could boost Consumer.

In what appeared a choreographed routine, BT, the government, and regulator Ofcom issued a series of commitments, promises and aspirations that collectively suggest there is a clear renewed effort building to overhaul the UK’s communications infrastructure, and the rules and regulations that govern it.

In late-July 2018, in the days before BTwatch went to press, a series of strategic announcements from the three players were released. In chronological order:

On 23 July 2018, the Department for Digital, Culture Media and Sport (DCMS) released its policy paper the Future Telecoms Infrastructure Review (FTIR).

Before markets opened on 24 July 2018, Ofcom followed up with its own policy position paper Regulatory certainty to support investment in full-fibre broadband.

Within ten minutes of the Ofcom announcement, BT and Openreach unveiled new volume-based price cuts for communications providers taking up full and partial-fibre services.

This flurry of announcements followed earlier recommendations made to the government on the UK’s digital future by the National Infrastructure Commission in early-July 2018, which had called for a national broadband plan to be in place by the end of 2018, and a strategy to reach a fully fibre-based infrastructure by 2033. The DCMS plan is also driven by government ambitions to play catch-up with European peers on full-fibre penetration, and make fibre-to-the-premises available to half the country by 2025.

The review papers, research documents and product propositions collectively provide a basis for determining the probable path, and prospects of success for the refresh of the UK communications infrastructure, and these will be further analysed in future issues of BTwatch, particularly in relation to significance for 5G development and network convergence. Set out below, are the key goals and early talking points.

Government aims for invigorated competition in a more open market

The FTIR is intended to provide the basis for government policy and is expected to be supported by legislation in a number of areas. The government is also using the review document to compile a Statement of Strategic Priorities that will be passed on to Ofcom as it develops its new regulatory approach.

Key proposals highlighted in the initial FTIR document are:

Comprehensive and unrestricted opening up of access to Openreach’s physical infrastructure to rivals targeting both the business and consumer sectors.

Increased rights of entry and access for operators to install networks in leased or rented property (residential or commercial). The government is also taking steps to open up its own property estate to improve mobile coverage, and will require utilities such as energy and water suppliers to open their infrastructure to communications providers. It further intends to standardise rules around streetworks to facilitate network rollout while minimising disruption.

Regulatory reform including recognising levels of competition on a geographic level, and providing a longer-term view of regulatory conditions for investors.

Co-ordinated and complete switch from copper to fibre, managed by Ofcom.

Legislation to be introduced in the near-term that would obligate developers to offer full fibre in all new building developments.

Opening up more spectrum for 5G deployment. 700MHz spectrum is expected to provide widespread coverage, with higher bands deployed in built-up areas, and mmWave technology also recognised as contributing to network development.

While reserving the right to change its mind on closer inspection, BT broadly welcomed the publication of the government paper, describing it as “the right ambition, with the right focus on driving commercial investment through both competition and regulatory reform”.

For the rest of this article, including further details and analysis, see the full July release of BTwatch.